NI 43-101 Technical Report Las Palmas Property
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NINI 4343--101101 TechnicalTechnical ReportReport on the Las Palmas Property 71°37'17.04"W And 31°14'18"S Coquimbo, Choapa Province ChileChile Gran Pacific Minerals S.A. November 24 2012 By Derrick Strickland P. Geo. Las Palmas Property NI 43-101 November 2012 Chile Table of Contents 1 SUMMARY ........................................................................................................................................... 4 2 INTRODUCTION.................................................................................................................................. 5 2.1 TERMS REFERENCE..................................................................................................................... 6 3 RELIANCE ON OTHER EXPERTS......................................................................................................7 4 PROPERTY DESCRIPTION AND LOCATION.................................................................................... 8 4.1 LAND TENURE IN CHILE................................................................................................................ 9 4.1.1 Exploration Concessions............................................................................................... 9 4.1.2 Exploitation Concessions ............................................................................................ 15 4.2 ROYALTIES, ENCUMBRANCES..................................................................................................... 16 4.2.1 Royalties......................................................................................................................16 4.3 WATER RIGHTS ACCORDING CHILEAN LAW................................................................................. 16 4.4 LEGAL AGREEMENTS ................................................................................................................. 17 4.5 ENVIRONMENTAL LIABILITIES ...................................................................................................... 17 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY17 6 HISTORY............................................................................................................................................ 18 6.1.1 October 1904 Hartmann.............................................................................................. 18 6.1.2 September, 1927 Baeza, A ......................................................................................... 18 6.1.3 September, 1931......................................................................................................... 18 6.1.4 March 14, 1932 Gonzalez, A....................................................................................... 18 6.1.5 August 2012, Garcia.................................................................................................... 20 7 GEOLOGICAL SETTING AND MINERALIZATION ........................................................................... 20 7.1 REGIONAL GEOLOGY ................................................................................................................. 20 7.2 PROPERTY GEOLOGY ................................................................................................................ 23 8 DEPOSIT TYPE ................................................................................................................................. 25 9 EXPLORATION.................................................................................................................................. 27 10 DRILLING ........................................................................................................................................... 27 11 SAMPLE PREPARATION, ANALYSIS AND SECURITY .................................................................. 27 12 DATA VERIFICATION........................................................................................................................ 28 13 MINERAL PROCESSING AND METALLURGICAL TESTING.......................................................... 29 14 ADJACENT PROPERTIES ................................................................................................................ 29 15 OTHER RELEVANT DATA AND INFORMATION ............................................................................. 33 16 INTERPRETATION AND CONCLUSIONS........................................................................................ 35 17 RECOMMENDATIONS ...................................................................................................................... 36 18 REFERENCES................................................................................................................................... 37 19 DATE AND SIGNATURE PAGE ........................................................................................................39 20 SIGNATURE PAGE............................................................................................................................ 40 2 Las Palmas Property NI 43-101 November 2012 Chile List of Figures Figure 1: Regional Property Location .......................................................................................................... 10 Figure 2: Regional Property Location .......................................................................................................... 11 Figure 3: Keyla Uno Block............................................................................................................................ 13 Figure 4: Keyla Dos Block............................................................................................................................ 14 Figure 5: Historical Plan for India Central .................................................................................................... 19 Figure 6: Regional Geology ......................................................................................................................... 22 Figure 7: Property Geology.......................................................................................................................... 24 Figure 8: Geological Model .......................................................................................................................... 27 Figure 9: Author Collected Samples ............................................................................................................ 30 Figure 10: Rock Pile Outside Adit ................................................................................................................ 32 Figure 11: Recent Road Cut ........................................................................................................................ 32 Figure 12: Onsite Ball Mill ............................................................................................................................ 32 Figure 13: Visible Gold from Hand Milling.................................................................................................... 32 Figure 14: Adit on Site.................................................................................................................................. 32 Figure 15: Property Monument .................................................................................................................... 32 Figure 16: Las Palmas ................................................................................................................................. 34 List of Tables Table 1: Terms Of Reference ........................................................................................................................ 6 Table 2: Claim List ....................................................................................................................................... 12 Table 3: Field description of the samples .................................................................................................... 31 Table 4: Select Assays Author Samples...................................................................................................... 31 3 Las Palmas Property NI 43-101 November 2012 Chile 1 Summary This report was commissioned by Gran Pacific Minerals S.A, having offices in Santiago Chile and was prepared by Derrick Strickland, P.Geo. As an independent geologist, the author was asked to undertake a review of the available data and recommend (if warranted) specific areas for further work on the Las Palmas Property. The Las Palmas Propertyis located in IV Region Coquimbo, Choapa Province, Chile. The property is situated 80 km north of the city of Los Vilos, 156 km south of the city of Coquimbo-La Serena and 295 km northwest of the city of Santiago, the capital of Chile. The approximate coordinates for the centre of the project at a latitude and longitude of 71°37'17"W and 31°14'18"S. The project is between 40 masl and 250 masl. The property consists of 2 non-contiguous surveyed blocks totalling 158 hectares. The property is made up of two distinct blocks Keyla Uno and Keyla Dos. Keyla Uno consists of 20 surveys exploitation concessions, currently owned by Mr. Juan Nelson Flores Carvajal. In an agreement dated October 10, 2012 between Juan Nelson Flores Carvajal and Alfredo Rovaldo Manfredi Aguirre Keyla Uno and Keyla Dos can be purchased for USD $2,500,000. The property is in the Coastal Cordillera of central Chile the Eastern and Western Series are traditionally distinguished within the pre-Andean coastal accretionary belt as units of contrasting tectonic